The new year is just around the corner, and people around the world are starting to think about setting resolutions and ways in which they can better themselves. Many of these commitments will be centred around physical health, with 37 per cent of people citing fitness as their number one goal in 2016, according to figures collated by Nielsen. Of course, focussing on your personal wellbeing is important, but have you also considered the health of your small business' accounting practices?
Here are three resolutions to improve your business finance management in 2016:
1. Keep better track of accounts
Staying abreast of income and expenses not only provides you with an instant snapshot of your company's finances, but can also reveal seasonal fluctuations and other trends that will help you decide where best to allocate your resources. Making use of small business accounting software such as CashManager from Accomplish enables you to easily keep track of your overall financial standing at any given time.
2. Set a budget
It goes without saying that you need to spend money to make money, but that doesn't mean that you should throw all caution to the wind and spend frivolously. Forbes contributor Eric Wagner recommended that start-ups in particular should take a lean approach to business wherever possible, and focus on minimising expenses until they find true success.
3. Put pressure on debtors
In 2016, make a concerted effort to get your clients to repay any outstanding debts they may have. Business.govt.nz suggested that this might involve:
- Regularly contacting debtors
- Invoicing clients as quickly as possible
- Being up front about the costs involved before starting work
Leveraging business accounting software can streamline this process by giving you the power to create customisable invoices and create detailed reports of your amount owed.
Your objectives in 2016 will depend on your unique circumstances, but by setting one of these resolutions you'll be better equipped to handle your business finances in the new year and beyond.